Unofficial Earnings Play

Unofficial Earnings Play

Hello Smart Option Sellers! I mentioned yesterday that I may have an unofficial earnings play for everyone today. The company releases earnings after the bell today and although the option prices are not as cheap as I'd like them to be, I'm still going to give you the play. Use this as you will in deciding whether or not to enter. Remember, it's unofficial. Lululemon (LULU) Lulu is a clothing manufacturer of mostly women's workout and athletic gear. You don't need to know much more than that. What you do need to know is that for whatever reason, LULU has managed more times than not to jump big either higher or lower after announcing earnings. I'm thinking this time won't be much different. The problem here is that the option market-makers think so as well, and have priced the options accordingly. Summary: we won't be able to find a real bargain. But, it doesn't mean we still can't try. With LULU having the capability to jump higher or lower by at least $5 to $10 per share after earnings, we're going to want to concentrate on that radius. If we want to take advantage of a potential large move and find cheap options at the same time, we need to set our sights on a few different strike prices. And since we don